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RDUS (Radius Recycling) Degree of Operating Leverage : -189.04 (As of Feb. 2025)


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What is Radius Recycling Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Radius Recycling's Degree of Operating Leverage for the quarter that ended in Feb. 2025 was -189.04. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Radius Recycling's Degree of Operating Leverage or its related term are showing as below:

RDUS's Degree of Operating Leverage is ranked better than
98.5% of 601 companies
in the Steel industry
Industry Median: 1.11 vs RDUS: -189.04

Radius Recycling Degree of Operating Leverage Historical Data

The historical data trend for Radius Recycling's Degree of Operating Leverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Radius Recycling Degree of Operating Leverage Chart

Radius Recycling Annual Data
Trend Aug15 Aug16 Aug17 Aug18 Aug19 Aug20 Aug21 Aug22 Aug23 Aug24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 4.67 50.23 0.21 6.02 -603.35

Radius Recycling Quarterly Data
May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24 May24 Aug24 Nov24 Feb25
Degree of Operating Leverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 10.96 92.96 -603.35 -287.34 -189.04

Competitive Comparison of Radius Recycling's Degree of Operating Leverage

For the Steel subindustry, Radius Recycling's Degree of Operating Leverage, along with its competitors' market caps and Degree of Operating Leverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Radius Recycling's Degree of Operating Leverage Distribution in the Steel Industry

For the Steel industry and Basic Materials sector, Radius Recycling's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Radius Recycling's Degree of Operating Leverage falls into.


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Radius Recycling Degree of Operating Leverage Calculation

Radius Recycling's Degree of Operating Leverage for the quarter that ended in Feb. 2025 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( -297.144 (Feb. 2025) / -47.873 (Feb. 2024) - 1 )/( 2743.781 (Feb. 2025) / 2821.497 (Feb. 2024) - 1 )
=5.2069/-0.0275
=-189.04***

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

** TTM data of EBIT and Revenue was used to calculate Degree of Operating Leverage.
*** Please be aware that the Degree of Operating Leverage calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.


Radius Recycling  (NAS:RDUS) Degree of Operating Leverage Explanation

Degree of Operating Leverage (DOL) is a leverage ratio that measures the sensitivity of a company’s operting income, also referred to as Earnings Before Interest and Taxes (EBIT), to fluctuations in its Revenue. DOL is a method used to quantify a company’s operating risk. This risk is related to the company's structure of variable costs and fixed costs. Since the fixed costs do not allow the company to adjust the operating costs, the operating risk rises with a higher fixed-to-variable costs proportion.

A high Degree of Operating Leverage indicates that the company’s fixed costs exceed its variable costs. By increasing the sales, the company can earn more profits. In addition, the company must be able to maintain relatively high sales to cover all fixed costs.

Be Aware

The use of operating leverage varies across different industries and business sectors, and the application of Degree of Operating Leverage (DOL) should be adjusted accordingly.


Radius Recycling Degree of Operating Leverage Related Terms

Thank you for viewing the detailed overview of Radius Recycling's Degree of Operating Leverage provided by GuruFocus.com. Please click on the following links to see related term pages.


Radius Recycling Business Description

Traded in Other Exchanges
Address
299 SW Clay Street, Suite 400, Portland, OR, USA, 97201
Radius Recycling Inc is a North American Based company which is involved in recycling of ferrous and nonferrous metal, including end-of-life vehicles, and a manufacturer of finished steel products. As a vertically integrated organization, it offers products and services to meet world-wide demand through the network that includes fifty retail self-service auto parts stores, fifty four metals recycling facilities, and an electric arc furnace steel mill.
Executives
Steven Heiskell officer: SVP & Managing Director, APB 299 SW CLAY ST. SUITE 350, PORTLAND OR 97201
James Matthew Vaughn officer: SVP, GC, & Corp. Secretary ONE MEMORIAL PLAZA, 800 GESSNER ROAD, SUITE 875, HOUSTON TX 77024
Stefano R. Gaggini officer: Corporate Controller 299 SW CLAY ST. SUITE 350, PORTLAND OR 97201
Brian Souza officer: SVP, Chief Ops Mgmt Officer C/O SCHNITZER STEEL INDUSTRIES, INC., 299 SW CLAY ST., PORTLAND OR 97201
Michael R Henderson officer: SVP & Pres Metal Recyling Bus P O BOX 10047, PORTLAND OR 97296
Mark Schuessler officer: VP and CAO C/O SCHNITZER STEEL INDUSTRIES, INC., 299 SW CLAY ST., PORTLAND OR 97201
Gregory R Friedman director C/O CORTEVA, INC., 974 CENTRE ROAD, BLDG. 735, WILMINGTON DE 19805
Wayland R Hicks director PO BOX 330608, MIAMIA FL 33233
Peter B Saba officer: SVP & General Counsel 6903 ROCKLEDGE DRIVE, BETHESDA MD 20817
Leslie L Shoemaker director TETRA TECH, INC., 3475 EAST FOOTHILL BOULEVARD, PASADENA CA 91107
Richard Peach officer: Deputy CFO 299 SW CLAY STREET, SUITE 350, PORTLAND OR 97201
John D Carter director, officer: President and CEO 17575 LITTLE RIVER DRIVE, BEND OR 97707
Glenda J Minor director 17000 ROTUNDA DRIVE, DEARBORN MI 48120
Wilson D Erich officer: SVP, Chief HR Officer 299 SW CLAY ST., SUITE 350, PORTLAND OR 97201
Jeffery Dyck officer: Pres. CascadeSteelRollingMills 299 SW CLAY STREET, PORTLAND OR 97201